- Litecoin crypto price has been in a tight range in the past few weeks.
- The fear and greed index has crashed to the fear zone of 30.
- The US dollar index (DXY) has surged to the highest level in months.
Litecoin price has been in a tight range in the past few days as investors wait for the next catalyst. The LTC coin has been stuck at $64, higher than the year-to-date low of $57.53. It remains significantly below the year-to-date high of $114.
US dollar index soars
Litecoin price has remained in a tight range even as the fear and greed index slumped. Data by CNN Money shows that the index has dropped to the fear zone of 30 from the year-to-date high of over 80.
It is clear to see why investors are fearful. First, the US dollar index (DXY) has jumped to a multi-month high of $106.2. It has jumped as the currency has gained momentum against other currencies like the euro, Chinese yuan, pound, and Swiss franc. The greenback is often seen as one of the safest havens in the market.
Second, the fear and greed index has slumped as global stocks slump. As I wrote here, the Nasdaq 100 index is approaching the correction zone, when it slips by 10% from its highest point. The Dow Jones, S&P 500, DAX, and FTSE 100 have all retreated in the past few months.
Read more: How to buy Litecoin.
Third, the Federal Reserve seems to be living in an alternate universe. While the bank decided to leave interest rates unchanged, the FOMC also hinted that it will deliver another rate hike later this year. The bank hopes that these rate hikes will help to bring inflation to its 2% target. These rate hikes have led to higher mortgage and personal rates in the US.
There are other risks to the market as bonds retreat, crude oil price steadies, UAW workers’ strike continues, and the Panama Canal dries.
Therefore, Litecoin price has held quite well because of the ongoing Bitcoin price action. BTC has remained above $26,000. This performance is likely because of the likelihood of a Bitcoin spot ETF.
Litecoin price forecast
The 4H chart shows that the LTC coin has been in a tight range in the past few days. It is consolidating at the 25-day and 50-day exponential moving averages (EMA). At the same time, the Relative Strength Index (RSI) has tilted below the neutral point of 50. The Average True Range (ATR), the best measure of volatility has also dropped sharply.
Therefore, Litecoin price will likely remain in this range as traders wait for the next price action. In this case, the key support and resistance levels to watch will be at $60 (11th September low) and $71.12 (August 29th high).
